JJB back in game with spurt to 386p

DAVE Whelan, founder and chairman of sports retailer JJB Sports, was at the Millennium Stadium in Cardiff on Sunday to see his beloved Blackburn Rovers beat Spurs 2-1 to win the Worthington Cup and a place in Europe.

It helped take his mind off JJB's share price, which had fallen 14% in a fortnight amid vague rumours of a price-fixing probe into replica football kits.

Whelan was a happy bunny again yesterday when JJB rallied 24 1/2p to 386p on an Investec Henderson Crosthwaite buy recommendation. It followed JJB's reassurance that it has 'never been involved in any price fixing' and has 'had no contact with the Office of Fair Trading for three to four months'. It added: 'There is no case for JJB to answer.'

JJB retaliated to a front-page press report that the Football Association was facing a £1m fine after admitting price-fixing on replicas of the England football strips sold through the website England Direct. JJB is the official stockist of Three Lions merchandise for the English team.

IHC's analyst, Mathew McEachran, believes that, though the rate of growth over the next two years will be in high single digits, slower than the last two years, recent weakness provides an excellent buying opportunity.

The Footsie closed below the day's best with a gain of 38.3 points at 5139 after Wall Street went from 41 points up to 111 down following disappointing US data on consumer confidence.

It fell more than expected in February to 94.1 from January's five-month high of 97.8. It fuelled concern that the world's biggest economy will not emerge from recession as swiftly as recently predicted.

Sterling fell more than a cent to $1.4150, with the euro at 60.95p. Many US fund managers were keeping their powder dry ahead of today's semi-annual monetary policy testimony by Fed chairman Alan Greenspan.

Broker Bear Stearns says: 'The US economy may be over the worst, and economic activity is picking up, but we are a long way off the Fed thinking about moving to raise US rates again.'

Broadcaster Carlton was the name on everyone's lips as it soared a further 27 1/4p to 228p for a two-day gain of 39 1/4p, or 21%. Carlton's ITV Digital joint venture partner Granada rose 4 1/4p to 113 1/2p on turnover of 61m.

As sector analysts continued to give the thumbs-up to its decision to sell its FT Business arm, which includes the Investors Chronicle and The Banker, Pearson jumped 47p to 773p. Cable & Wireless buzzed 9 1/2p higher to 226 1/2p after Investec Henderson Crosthwaite moved from 'reduce' to buy.

The broker believes downside from here is limited. There is now upside potential from improvements in market conditions or, if these do not materialise, management changes and/or restructuring.